Your last Will and Testament is one of the
most important documents you will ever sign.
It says WHO is important to YOU,
as well as
WHAT is important to YOU!
If You Have a Will Is It Due For An Overhaul?
|If you answer 'true' to any of the following statements, maybe it's time to consider
reviewing your will.
- My family needs and goals have changed
- Recent estate tax reforms may affect my situation
- I have moved to/from another state or country
- My youngest child has reached legal age
- I have new children or grandchildren
- My marital status has changes
- The property I own has undergone changes
- I haven't fulfilled my charitable goals
Reasons Why People Leave A Legacy
- To help a favorite charity continue its mission
- To fulfill their lifelong goals
- To give back to an organization or to the community
- To attain a sense of satisfaction - giving makes people feel good
- To show gratitude for assistance in time of need
- To honor family or friends
- To take advantage of tax savings
How To Create Your Legacy
Reflect on your life
values and what has been important to
Contact your favorite
nonprofit organizations to find out
more information about programs, services
Evaluate your financial
assets and consult a professional for
guidance in planning process
Take action - work with
professional advisor to write or review
your will, establish an estate plan,
and review your assets on a regular
Planned Giving Terms
Planned Gifts - Include
gifts through your will, charitable gift
annuities, beneficiary of life insurance,
and pooled income funds. This giving often
allows a donor to increase income, avoid
taxes, and make a generous gift to one or
more charitable organizations in the future.
Bequests - Provision
in a person's will, which leaves money or
another asset to a charitable organization,
church, and/or nonprofit group. The charitable
gift is not included in the donor's taxable
- A charitable organization may be listed
as a beneficiary of retirement plan benefits
and IRAs. Donor can avoid both federal estate
taxes and income taxes if they are made
payable at death to a charitable organization
or to a charitable remainder trust. Life
insurance policies may be contributed to
a charitable organization by irrevocably
changing the policy ownership and beneficiary
to the organization.
Trust Designation -
Establishing a Living Trust, also called
Revocable Trust, may designate that at death
a particular asset or dollar amount go to
a charity. Living Trusts generally hold
all assets of an individual and thus avoids
probate as to such assets.
Life Income Gifts -
Allow donors to increase income, save taxes
and make generous charitable gifts. Gifts
Remainder - The portion
of a planned gift that remains after the
life of the donor to further the organization's
Charitable Gift Annuity
- Contract between donor and charitable
organization. The donor gives a gift and
the organization guarantees to pay an annual
amount for the lifetime of one or two people.
The annual payout is fixed and cannot be
Deferred Gift Annuity
- The donor makes the gift now, but the
payments to the beneficiary are deferred
until a later time, often a specific age.
Because the gift has an opportunity to grow,
the payments are often larger, as is the
final remaining amount that the organization
Charitable Remainder Unitrust
- This requires a legal agreement involving
a donor, a trustee and one or more charities.
Donor permanently transfers assets to the
trust, but the charitable beneficiary may
be changed. When trust is formed, a payout
rate (at least 5%) is set. Each year this
rate is applied to the Unitrust amount,
which is paid annually to the donor or another
beneficiary. The donor may continue to make
contributions to the trust.
Charitable Annuity Trust
- Similar to the Unitrust except it pays
a fixed amount per year. This dollar payout
is set when annuity trust is established.
Donor may not add additional assets to the
Charitable Lead Trust
- Charitable organization receives income
from a trust for a set number of years.
At the end of the term the assets are returned
to family members designated by donor.
Life Estate Reserved for
Residence or Farm - A donor deeds his
or her residence or farm to a charitable
organization with the right to live in (or
rent out) the home or farm while the donor
Selection of a Professional Advisor
It is important that you research
and utilize all the appropriate resources
available to you in your estate planning
process. The following information may be
helpful to you in your search and selection
of your advisory team appropriate for your
their clients on a variety of tax and financial
planning decisions. They are often in the
best position to help donors assess the
impact of a particular gift on the donor's
personal financial situation as well as
any estate planning repercussions or opportunities
that might result from a gift.
Attorneys provide legal
advice on the gift planning process and
execution of the plan to assure compliance
with the state and federal regulations.
They are the only professionals who are
qualified to draft the legal documents involved
in the planned giving process [wills, trusts,
etc]. Attorneys are also most helpful in
determining the legal requirements surrounding
a gift in your state of residency.
assist in all aspects of a donor's personal
financial life. They can help determine
the impact that the making of a gift will
have on the donor's personal investment
plan. They can assist in selecting the most
appropriate financial asset to be used as
a gift and can assist in the actual transfer
of that asset into a trust vehicle or to
the recipient of the planned gift. The involvement
of the financial advisor can continue with
the management of the gifted assets after
these assets have been placed in a trust
or other vehicle.
Life Insurance Advisors
can assist in the gifting and estate planning
processes and can help donors understand
the role of life insurance in those processes.
In addition, these advisors are most helpful
in advising on the designation and monitoring
of charitable beneficiaries for life insurance
and annuity policies.
Trust Services are
needed when a donor uses a charitable trust
in the gifting process. The trust service
advisor can assist in the establishment
and ongoing maintenance of those trusts.
They can help the donor integrate estate
planning, investment planning and management,
family wealth transfer planning, income
tax planning and charitable giving.
Finding an Advisor That's Right For You
If you are searching for a professional
advisor for the first time, seeking additional
assistance or looking for someone who better
meets your planning needs, the following
questions might be helpful to you in finding
the best resource people. Many advisors
will offer a free or reduced fee for first
time consultation, so you may want to ask
about this option.
- Does the advisor's core business match
the kind of legal or financial advice
you are looking for?
- Does the advisor's training supports
the level of help you are possibly going
- In scheduling a first time appointment/consultation,
did you sense the advisor was interested
in you and your needs?
- Was the advisor a good communicator
and respond to your questions and provide
- What was your overall comfort level
while talking to the advisor?
Asset Planning Guide - Estate Planning Resource
A useful handbook to help you
compile your personal and financial inventory.
It is also your own 'history' book, which
will provide valuable information to your
family members in case of unforeseen circumstances.
For more information contact one of the
LEAVE A LEGACY® Mankato Area Professional
Advisors or Nonprofit members listed on
Request for Speakers Bureau Presentation
LEAVE A LEGACY® Mankato Area
has volunteers who are trained to speak
to nonprofit boards or gatherings of individual
supporters of your organization. Presentations
are 30-45 minutes in length and will be
adapted to your needs. A 9-minute video
is part of the session. Please go to
"Contact Us" link for more information.
MAKE A DIFFERENCE...START PLANNING YOUR LEGACY TODAY!
- Plan for your Future
- Identify Your Assets
- List Your Charitable Gifts
- Obtain or Review Your Will
- Learn About Your Options
- Call A Professional Advisor
LEAVE A LEGACY® Mankato Area
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